The marked price of a spoken sweater is Rs 1750. If the shopkeeper allows 20% discount and makes a profit of Rs 150, at what price did he purchase the sweater?

Answer: Rs 1250

Solution:

For a woolen sweater,

Marked Price (MP) = Rs 1750

Discount percentage (d%) = 20%

Profit amount (P) = Rs 150

To find: Cost Price (CP) = ?

We know,

Selling Price = $MP( 1 - \frac{d%}{100})$

$= MP ( 1 - \frac{20}{100})$

$= 1750 × \dfrac{80}{100}$

$= Rs 1400$

Now,

Cost Price = SP - P

$or, CP = 1400 - 150$

$\therefore CP = Rs 1250$

Hence, the required cost price of the woolen seater is Rs 1250.

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